Approval to hold a stake in a financial sector company of more than 15% - Atradius Insurance Holding N.V.

Administered by Department of the Treasury

Legislation au C2016G01189 In force Gazette

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Approval to hold a stake in a financial sector company of more than 15%

 

Financial Sector (Shareholdings) Act 1998

 

 

SINCE

 

  1. Atradius Insurance Holding N.V. and the person(s) named in the attached Schedule (the applicants) have applied to the Treasurer under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act), for approval to hold a stake of more than 15% in each of the companies listed in the attached Schedule (the Companies), financial  sector companies under the Act; and

 

B.                 I am satisfied that it is in the national interest to approve the applicants holding a stake in each of the Companies of more than 15%,

 

I, Louis Serret, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE the applicants holding a stake in each of the Companies of 100 %.

 

This Approval commences on the date it is signed and remains in force indefinitely. Dated 31 August 2016

[Signed]

 

Louis Serret General Manager

Specialised Institutions Division

 

 

 

 

 

Interpretation Document ID: 224308

 

In this Notice:

financial sector company has the meaning given in section 3 of the Act.

stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.

unacceptable shareholding situation has the meaning given in section 10 of the Act.

Note 1


Under paragraph 16(2)(a) of the Act, the Treasurer may, by written notice given to a person who

holds an Approval under section 14, impose one or more conditions or further conditions to which the Approval is subject. Under paragraph 16(2)(b) of the Act, the Treasurer may revoke or vary any condition imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s power under subsection 16(2) of the Act may be exercised on the Treasurer’s own initiative or on application made to the Treasurer in accordance with the requirements of subsection 16(4) of the Act, by the person who holds the Approval (see subsection 16(3) of the Act).

Note 2


A person who holds an Approval under section 14 may apply to the Treasurer under section 17(1) of

the Act, to vary the percentage specified in the Approval.

Note 3


Under subsection 17(6) of the Act, the Treasurer may, on the Treasurer’s own initiative, by written

notice given to a person who holds an Approval under section 14, vary the percentage specified in the Approval if the Treasurer is satisfied that it is in the national interest to do so.

Note 4


The circumstances in which the Treasurer may revoke a person’s Approval under section 14 are set

out in subsection 18(1) of the Act.

Note 5


Section 19 of the Act provides for flow-on approvals. If an Approval has been granted for the

holding of a stake in a financial sector company and the financial sector company is a holding company for an authorised deposit-taking institution or an authorised insurance company, then an approval is taken to exist for the holding of a stake of equal value in each financial sector company that is a 100% subsidiary of the holding company.

Note 6


Under section 14 of the Act, the Treasurer must give written notice of this Approval to the applicant

and financial sector company concerned, and must publish a copy of this Notice in the Gazette.

Note 7


Under section 11 of the Act, a person or 2 or more persons under an arrangement are guilty of an

offence if the person(s) acquires shares in a company and the acquisition has the result, in relation to a financial sector company, that:

(i)         an unacceptable shareholding situation comes into existence; or

(ii)       if an unacceptable shareholding situation already exists in relation to the company and in relation to a person – there is an increase in the stake held by the person in the company;

and the person(s) was reckless as to whether the acquisition would have that result. A maximum penalty of 400 penalty units applies or by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 2,000 penalty units. By virtue of section 39 of the Act, an offence against section 11 is an indictable offence.

 

 

 

 

 

Schedule - the person(s) who applied for approval

 

Atradius Insurance Holding N.V. Atradius N.V.

Grupo Compañia Española de Crédito y Caución, S.L. Grupo Catalana Occidente, S.A.

Corporación Catalana Occidente, S.A. La Previsión 96, S.A.

Inoc, S.A. Depsa 96, S.A.

C.O. Sociedad de Gestión y Participación S.A. José Maria Serra Farré

Hugo Serra Calderón Pia Serra Calderón

 

 

 

 

 

Schedule - the financial sector companies

 

Compania Espanalo de Seguros y Reaseguros de Credito y Caucion Sociedad Anonima ARBN 610 834 556

Atradius Insurance Holding N.V. Atradius N.V.

Overview

The Financial Sector (Shareholdings) Act 1998 was enacted by the Parliament of Australia to regulate the acquisition of significant stakes in financial sector companies, thereby addressing the potential risks posed by concentrated ownership. The Act seeks to maintain the stability and integrity of the financial sector by preventing unacceptable shareholding situations that could threaten the operations and soundness of financial institutions. Under this Act, the Treasurer is empowered to approve, impose conditions on, or revoke approvals for shareholdings exceeding 15% in financial sector companies. In this case, Atradius Insurance Holding N.V. and its associated entities have applied for and received approval from the Treasurer to hold a 100% stake in specified financial sector companies. This approval was granted on the basis that it is in the national interest, and it allows for the continuation of this significant shareholding indefinitely. The approval process includes mandatory notification to the relevant parties and publication in the Gazette, ensuring transparency and public accountability.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to any person or entity seeking to hold a stake exceeding 15% in an Australian financial sector company, as defined by the Act. This legislation is of Commonwealth jurisdiction and applies to all financial sector companies within Australia. The Act's purview includes the approval process for significant shareholdings, and it delineates the conditions under which such shareholdings may be approved or restricted by the Treasurer. The Act provides for certain exclusions and exemptions, particularly in cases where flow-on approvals apply to subsidiary companies of an approved holding company. The Act can be further regulated through subordinate instruments, allowing the Treasurer to impose, vary, or revoke conditions on approvals, or to alter the specified percentage of shareholding under certain circumstances. The approval granted in this specific case to Atradius Insurance Holding N.V. and associated entities to hold a stake in listed financial sector companies is effective from the date of signing and remains in force indefinitely, subject to the Treasurer’s powers to modify or revoke the approval.

Key Provisions

The Financial Sector (Shareholdings) Act 1998 contains various provisions concerning shareholdings in financial sector companies. Under section 13, an applicant may seek approval from the Treasurer to hold a stake in a financial sector company exceeding 15%. In the present case, section 14 approval has been granted to Atradius Insurance Holding N.V. and the named individuals to hold a stake of 100% in the listed financial sector companies. This approval is effective from the date it is signed and continues indefinitely. The act also includes provisions for imposing, varying, or revoking conditions on the approval, as well as varying the percentage specified in the approval (sections 16 and 17). The Act imposes several obligations on the parties it governs. Firstly, under section 11, it is an offence to acquire shares in a financial sector company if this results in an unacceptable shareholding situation or an increase in an existing unacceptable shareholding situation, done so recklessly. For natural persons, the maximum penalty is 400 penalty units, while for bodies corporate, the penalty can be up to 2,000 penalty units. Such an offence is indictable (section 4B(3) of the Crimes Act 1914 and section 39 of the Financial Sector (Shareholdings) Act 1998). The Treasurer has the authority to impose conditions or further conditions on an approval under section 16(2)(a) of the Act, which can be revoked or varied under section 16(2)(b). The Treasurer may also vary the percentage specified in the approval on their own initiative or at the request of the person holding the approval, if it is in the national interest (sections 16(2) and 17(6)). Additionally, the Treasurer can revoke an approval under section 18(1) if certain conditions are met. Flow-on approvals are provided for in section 19, meaning that if an approval is granted for a holding company, an approval is also taken to exist for the holding of a stake in each 100% subsidiary of the holding company.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.